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If the Equilibrium Exchange Rate Is $1 = 90 Yen

Question 87

Multiple Choice

If the equilibrium exchange rate is $1 = 90 yen, then at an exchange rate of $1 = 80 yen there is a


A) surplus of yen and dollars.
B) shortage of yen.
C) shortage of dollars.
D) shortage of yen and dollars.

Correct Answer:

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